October 30, Madrid. Debex (a European trade mark of Debexpert), an online auction for legal entities to buy and sell delinquent debts, has started operating in Spain. The first successfully sold pool was the Prestamer’s debt portfolio.
“The Spanish delinquent debts market looks very attractive. With the high volume of debts sold, the volume of online sales in this country is still quite low. By the end of the year, we plan to hold 8-10 auctions, and the next year we plan to gain a significant share throughout all key business indicators. The platform to buy and sell debt quickly and transparently is interesting both to local banks and to debt buyers. For the first time, debt buyers can buy portfolios that are a 100% fit to their profile and geography, which, of course, increases the liquidity of the entire batch of portfolios with which debt buyers operate,” says Alejandro Puyol Lechuga, Managing Director at Debex España.
According to the Bank of Spain in 2019, the total book value of sold delinquent debts amounted to 22 billion euros. According to Debexpert estimates, the expected sales volume of debts will amount to about 30 billion euros per year at the book value and about 2 billion euros at the sale price of the portfolios within the next few years.
The key advantage of Debexpert is the possibility to sell debts offered by banks and other financial institutions quickly, profitably, and conveniently. Debt buyers can get acquainted with the portfolio in detail before the start of trading to assess whether it fits their profile or not. The auction itself lasts one hour, and the buyer who offers the maximum price wins.
“The popularity of debt online sale is primarily due to the high speed and transparency of each transaction. Now, there is no need for debt sellers to search for a buyer on their own, combine debts into large portfolios in order to reduce labor costs, and conduct negotiations that can take a long time. We were able to sell our portfolio right at the very first auction,” comments Luna Rojo Casatejada, Lawyer at PRESTAMER, S.L.U.
Founded in 2019, Debexpert is an international company that began its operations in Russia. The company managed to quickly occupy a dominant position domestically. Currently, Debexpert is preparing to work with debt portfolios issued in Kazakhstan. The first trades in the U.S. are scheduled for November 2020.